Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

FICO to incorporate buy-now-pay-later loans into credit scores

axios.com

Post reply on HN
Print view View original

391–400 of 690 posts

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#391

Post by nwah1 »

veggieroll wrote: post #388

Ok, do rent next. Paying rent doesn't count towards your credit score (at least it didn't a decade ago when I was getting my mortgage). And it's a glaring signal of how the system isn't built for what it claims: evaluating your ability to pay obligations on time. No, the system is built to trap people in poverty and enrich the rentier class.

Landlords like the idea of incorporating rent payments into credit scores, since it adds extra incentive to pay on time. Or, phrased differently, extra punishment for failing to pay on time.

Framing the current default as a help to the rentier class is just silly.

The rentier class are indeed a major cause of stagnation and inequality in our economy, but they are innocent of this one.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#392

Post by ProllyInfamous »

eagerpace wrote: post #161

How long until my score goes down because I don’t use these?!??

Background: During the riskiest span of my life, financially, I used to have a 780+ score and an AMEX Gold (for about a decade, early 2000s); now I don't have any credit cards, my vehicles are entirely paid.

My Conclusion: Credit scores demonstrate ability to re-pay interest (i.e. lender profits); it is a score that demonstrates how profitable you might-could-be, not necessarily representative of fiscal wisdom.

Meditation: not caring about your credit worthiness is a fantastic approach to life, as long as you've already bought your house (or have alternate plans, not involving a mortgage).

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#393

Post by fred_is_fred »

bediger4000 wrote: post #70

FICO scores are a joke. They hint at what they use to calculate them, but the algorithms are kept secret. Fair Isaac can't reveal the algorithms, otherwise they'd get gamed. Incentives to keep bad info and wrong info in dossiers are strong, too. If allowed, Fair Isaac would put rumors and other bullshit on n your file, and never take it out.

There are no incentives for Fair Isaac to promote or use "wrong info" because if the score they produce is deemed to be an inaccurate measure of credit risk, it would not be a useful product.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#394

Post by [deleted] »

ta1243 wrote: post #297
lesuorac wrote: post #249

Earlier quoted context omitted.

> You'd have to invest the savings and get way higher than inflation returns to break even. You say that like it's a difficult thing to do. S&P500 is up 710% since 1996. Gold is up 92% since 2012. Personally, the rent control is the best part of a mortgage and even though renting is typically better, I'm fine paying a premium for that. That said, good luck getting somebody to loan you 900k so you can play the stock m…

> Gold is up 92% since 2012. And housing is up 125% since 2012, so the sucker who bought gold instead of a house has lost out. We can all be rich in hindsight. (There's also other benefits to owning - like being able to have pets, not being able to be evicted, etc) But the biggest tell that housing is valuable is that nobody is spending $500k on housing to rent it out if they could make more money pumping $500k into…

[deleted]

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#395

Post by daft_pink »

veggieroll wrote: post #388

Ok, do rent next. Paying rent doesn't count towards your credit score (at least it didn't a decade ago when I was getting my mortgage). And it's a glaring signal of how the system isn't built for what it claims: evaluating your ability to pay obligations on time. No, the system is built to trap people in poverty and enrich the rentier class.

Is having your payments reported to a credit bureau really a benefit to you to allow you to have a better credit or is it a collection activity intended to help the creditor collect?

The reason buy now pay it later is being added, is because those lenders are having trouble collecting, so they want to add it to the credit score so there is an additional consequence if they don’t get paid. It’s a collection activity, not something that’s designed to help the payor.

Adding rent is mostly a benefit to the landlord not to the poor people.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#396

Post by 9rx »

lxgr wrote: post #389
9rx wrote: post #314

Earlier quoted context omitted.

> Or there's no Java language, it's all just UTF-8 characters. Some programming languages explicitly require UTF-8 in the language specification. Java is not one of them.

As of Java 18, it is: https://openjdk.org/jeps/400

That's not what your link says:

    The Java language allows source code to express Unicode
    characters in a UTF-16 encoding, and this is unaffected
    by the choice of UTF-8 for the default charset.
Perhaps you pasted the wrong one by mistake?

Not that such a change to the language for future code, even if only hypothetical, would bear any difference to this discussion anyway as legacy Java code encoded in other charsets is still Java code.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#397

Post by banannaise »

msgodel wrote: post #140
hnbad wrote: post #103

Earlier quoted context omitted.

Whatever you put aside is not going to be enough to prevent complete financial ruin if shit hits the fan. You might be able to cover smaller emergencies like an appliance breaking or your car needing repairs but literally just giving birth or being in an accident can bankrupt you in the US. I'm not at all surprised low to medium income Americans would just give up and accept their inevitable financial ruin instead of…

People need to stop moving out of their parent's house if they can't be stable. That's the root cause of a lot of the problems in the US.

This assumes, among other things, that they come from a stable home that has space for them and access to the things they need to create and maintain an income stream.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#398

Post by DrillShopper »

hopelite wrote: post #159
OptionOfT wrote: post #7

What's interesting here is that normally BNPL only does a soft check. I wonder if this is going to change. Equally, I find it weird that companies can ding your credit for not paying but have no obligation to report on-time payments. It should be both or none.

Technically it is largely already built in as an assumption that payments are made on time. You also don’t lend to a friend you will not be paid back by, will you? The credit score reduction is merely a diversion from norm, i.e., the expectation that you pay what you agree you owe. Ironically, there is actually zero reward for being a reliable person, there is only a punishment for being an unreliable person; and wit…

> You also don’t lend to a friend you will not be paid back by, will you?

I don't lend to friends and family. It's not worth losing those bonds over. I'll help financially where I can, and I'm not going to stop anyone paying me back, but I'm assuming that money is just gone.

Completely different calculus compared to credit.

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#399

Post by [deleted] »

potato3732842 wrote: post #284
bonoboTP wrote: post #148

Earlier quoted context omitted.

Societies used to understand this and put lots of limits around exploiting people, such as banning interest rates. But there is no unalloyed good. That ban also blocked rapid economic development as seen in the 19th century, where credit was absolutely critical for railroad construction and other infrastructure like electric or plumbing. It's a real dilemma with tradeoffs, where slogans and soundbites don't work. Hav…

I think the problem is that we left exploitation of people under the umbrella of government open and so all the demand for exploitation has sailed under that flag. You've got the tire companies lobbying states to up the tread depth for their safety inspections. The HVAC people got refrigerant restricted so that you have to be a license holder to buy it (artificially increasing demand for their service). The plumbing…

[deleted]

Re: FICO to incorporate buy-now-pay-later loans into credit scores

#400

Post by olyjohn »

nradov wrote: post #261
allenrb wrote: post #220

Earlier quoted context omitted.

Learning how to stand on your own in school is good practice for doing the same thing in life. By which I’m absolutely not saying “don’t have friends” but rather, you don’t have to be like everyone else. My kids won’t be on social media until they’re not kids anymore. If none of us take a stand, nothing ever changes.

Your kids will create hidden social media accounts that you don't know about. That's what I would have done in their situation.

Their exposure will still be much less than someone who gives them free reign and lets them sit in the livingroom staring at a phone. They won't be staring at the phone distracted while they're hanging out with the family.
Post reply on HN